Credit Union Ex-president Sues Group

November 3, 1990|By Jack Snyder of The Sentinel Staff

The former president of the Central Florida Educators Federal Credit Union - fired Sept. 17 amid allegations of election fraud and administrative improprieties - has sued the organization, charging he was unfairly dismissed and defamed.

J.D. Hudek Jr. of Orlando asks for unspecified damages in the suit, filed in Orange County Circuit Court. In the suit, Hudek charges the credit union breached his contract by firing him without cause. He also accuses the credit union's board of conspiracy to defame and defamation.

Named in the suit are Rex W. Beer, chairman of the credit union's board of directors, and directors Anne H. Gilmore, C. Norman Kent Jr., Mary Lynn Williams and James W. Wilson.

The credit union, one of the largest in Central Florida, has about 65,000 members in Orange, Seminole, Osceola and Lake counties. It has assets of about $140 million.

In his suit, Hudek said he joined the credit union in 1977 when it was still called the Orange County Teachers Federal Credit Union and had $13 million in assets.

Hudek alleges he and Beer clashed in 1989 and this year over the chairman's role in day-to-day management of the credit union. Beer meddled, Hudek charged, especially when Hudek was out of town.

Earlier this year, Beer began a smear campaign to get rid of Hudek, the suit charges.

When he was dismissed, Hudek was working under a contract signed April 25, 1989, setting his annual compensation at $95,000. That was modified on Dec. 21, 1989, boosting his annual salary to $102,600.

Hudek charges in the suit that board chairman Beer made ''false and defamatory allegations'' in a memorandum dated Feb. 5, 1990, and circulated to board members. The memorandum, included in the suit, said rumors were circulating that Hudek had bought furniture for the credit union's offices without bids or approval by the board and that an unidentified member of Hudek's family received a kickback in the deal.

The memorandum also said there were reports of kickbacks in placing the credit union's credit life insurance business, according to the suit.

Hudek charged that his dismissal letter gave no reason for the firing. His contract called for his dismissal only if he became disabled, breached the contract or was guilty of gross misconduct, he alleges in the suit.

Beer would not comment on the suit. The credit union board's lawyer, Dwight D. Saathoff, would not comment Friday.

Hudek and his lawyer, W. Crosby Few of Tampa, could not be reached for comment Friday.

Earlier this year, Nicholas Constantine, a Colonial High School teacher who had run for election to the credit union's board, sued the directors and Hudek, alleging election fraud.